Growing Online Revenue:Advertising, Sales and Classifieds                      Moscow, Russia              27 – 28 Septemb...
Agenda               Topic                          Presenter Online Advertising Market Overview          Ross Sales Tea...
Online ClassifiedsA cautionary tale : “Now you see them…now you don’t!”                           3
Online ClassifiedsMany different types of online classifieds businesses exist.                           The Big ThreeRecr...
Online ClassifiedsBut online classifieds also encompasses directory products, freeclassified services, and calendars.   Di...
Online ClassifiedsAnd there are dozens of other specialty sites - a few examples.      Dating/Matrimonials                ...
Online Classifieds  Online classified advertising in Russia and Ukraine is in the early  years of development, but still r...
Online Classifieds        The online classified market in Russia and Ukraine has attracted        many large international...
Online ClassifiedsWhat do you think are the main characteristics of the onlineclassified markets in Russia and the Ukraine...
Online Classifieds - StrategyDepending on the type of classifieds and your company’s strengths,there are several different...
Online Classifieds - Strategy“Go It Alone” strategy requires technology, sales and marketingstrengths.            KP22.ru ...
Online Classifieds - Strategy“Build a Network” builds on a group of similar like minded mediasites to seize a larger part ...
Online Classifieds - Strategy“Partner with National Site” strategy recognizes that national siteshave strong technology an...
Online Classifieds - Strategy“Traffic Sponsorship” leaves all sales, marketing and technology tothe larger national compet...
Online Classifieds – Business OperationsAfter selecting your strategy, there are two key areas that need someplanning – co...
Online Classifieds – Business OperationsAudience acquisition often requires large amounts of marketingsupport to start.Au...
Online Classifieds – Business OperationsIncreasingly online classified advertising takes a free plus premiumservices model...
Online Classifieds – Business OperationsPricing can also involve bundling and upselling from your offlineproduct.Upsellin...
Online Classifieds – The FutureClassifieds meet a simple need to publish small bits of structuredinformation.In the simpli...
Online Classifieds – The FutureMobile classified platforms have boomed in India and Africa.                               ...
Online Classifieds – The FutureClassifieds on Social Platforms like Facebook and Twitter have movedclassifieds to a more s...
Online Classifieds – The FutureClassified sites are also undergoing a rapid conversion to e-commerce sites with the develo...
Online Classifieds - SummaryThe online classifieds market is a small but rapidly growing market inRussia and the Ukraine a...
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Russia and Ukraine digital media classifieds

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Discussion of online classified markets with particular relevance to Russian and Ukrainian online markets

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  • Russia and Ukraine digital media classifieds

    1. 1. Growing Online Revenue:Advertising, Sales and Classifieds Moscow, Russia 27 – 28 September 2012
    2. 2. Agenda Topic Presenter Online Advertising Market Overview Ross Sales Teams: Organization & Motivation Ross Advertising Networks Ross Online Classifieds: Local Opportunities Ross Social Media: Building Audience & Revenue Kevin 2
    3. 3. Online ClassifiedsA cautionary tale : “Now you see them…now you don’t!” 3
    4. 4. Online ClassifiedsMany different types of online classifieds businesses exist. The Big ThreeRecruitment - Jobs Real Estate/Rentals Auto 4
    5. 5. Online ClassifiedsBut online classifieds also encompasses directory products, freeclassified services, and calendars. Directories Free Classifieds Calendars 5
    6. 6. Online ClassifiedsAnd there are dozens of other specialty sites - a few examples. Dating/Matrimonials Education/Course ListingsAnd many more, often very successful specialty sites – motorcycles,surfing, biking, wedding services, pets,... 6
    7. 7. Online Classifieds Online classified advertising in Russia and Ukraine is in the early years of development, but still represents a potentially large market. Estimated Online Classified Market Classified Advertising Overview (millions) Online revenue is often from print €70 – 100 revenue mm Fundamentally changes the nature of print classifieds Requires data to manage the €15 – 25 mm business online and in print Cost accounting information critical to managing the transition from print to online.For comparison: US = € 2.0b India = €130 mm Source: Company reports, 2011; eMarketer, Avendus 7
    8. 8. Online Classifieds The online classified market in Russia and Ukraine has attracted many large international competitors.AlexaRank Site Category Corporate Ownership Alexa Rank Site Category Corporate Ownership#18 Avito.ru Free Classifieds Privately Held - Accel Partners (US) #30 Slando.ua Free Classifieds Allegro Group/Naspers (S. Africa)#27 Auto.ru Auto Privately Held #59 Work.ua Recruitment Privately Held#28 Slando.ru Free Classifieds Allegro Group/Naspers (South Africa) #88 Rabota.ua Recruitment Grupa Pracuj (Poland)#45 Drom.ru Auto FarPost Group (Vladivostok) #119 Freelance.ru Recruitment Privately Held#50 HH.ru Recruitment Mail.ru (Naspers 29%) #164 Avtobazar.ru Auto Privately Held#62 TIU.ru Directory Allegro Group/Naspers (South Africa) #187 OLX.com.ua Free Classifieds Naspers (South Africa)#92 IRR.RU Free Classifieds Trader East Media/Hurriyet (Turkey) #192 Infocar.ua Auto Privately Held#150 OLX.ru Free Classifieds Naspers (South Africa) #195 AutoUA.net Auto Privately Held#218 Rabota.ru Recruitment RDWmedia.ru #308 Jobs.ua Recruitment Privately Held#241 Molotok.ru Free Classifieds Allegro Group/Naspers (South Africa) #434 AutoPortal.ua Auto Privately Held#304 Autonews.ru Auto RBC Holdings/Handelsblatt (Germany) #476 Domik.net Real Estate Privately Held#338 AutoRambler.ru Auto Rambler Group#351 Job.ru Recruitment Trader East Media/Hurriyet (Turkey)#401 FarPost.ru Free Classifieds FarPost Group (Vladivostok) Due to its small size and unique language, the Georgian online classified market is dominated by a few local competitors – MyMarket.ge and sister sites, jobs.ge, HR.ge, … 8
    9. 9. Online ClassifiedsWhat do you think are the main characteristics of the onlineclassified markets in Russia and the Ukraine?Databases: All are powered by structured databases of content:- Auto = Make, Model, Year, details, …- Real Estate = Location, Size, details, …- Jobs = Job Category, Job Title, requirements, …Content: Content is mostly contributed by the user/advertiser.Transactions: Most sites do not complete the transaction.When a site enables a transaction to be completed (payment paid, productdelivered), it is an e-commerce site.The basics of the site are still the same.Local: Very few large competitors exclusively local. 9
    10. 10. Online Classifieds - StrategyDepending on the type of classifieds and your company’s strengths,there are several different local classified strategies to consider.Go It Alone: Build, sell and market your own classified advertising site.Build a Network: Work with other local media to create more audience,build one site together; each partner markets and sells the site separately.Partner with National Site: Work together with a national classified site.National classified site provides technology platform, perhaps nationalmarketing and sales; local partners sell and market in locally.Traffic Partnership: Sell a traffic sponsorship to a national partner; do notcreate or sell local online classified advertising. 10
    11. 11. Online Classifieds - Strategy“Go It Alone” strategy requires technology, sales and marketingstrengths. KP22.ru “Go It Alone” Overview Build, sell, and market an independent classified site. Strengths Required: - Dominant offline classified business - Strong local sales and marketing - Strong technology team Risks: - Focused competition from national site - Cannibalization of print by online Longterm Strategy: - Dominate locally; expand regionally 11
    12. 12. Online Classifieds - Strategy“Build a Network” builds on a group of similar like minded mediasites to seize a larger part of the online audience for classifieds. “Build A Network” Overview Partner with other similar media companies to build a larger audience to compete with national players. Strengths Required: - Good offline classified business - Strong local sales and marketing - Strong technology team Risks: - Focused competition from national site - Cannibalization of print by online Longterm Strategy: - Dominate locally; expand network 12
    13. 13. Online Classifieds - Strategy“Partner with National Site” strategy recognizes that national siteshave strong technology and local media have strong local sales andmarketing. “Partner with National Site” Overview Partner with a national classified site. National site provides technology; local partner provides sales and marketing. Strengths Required: - Good offline classified business - Strong local sales and marketing Risks: - Cannibalization of print by online - National site takes over sales and marketing at the end of the contract Longterm Strategy: - National site wins; exit classified business. 13
    14. 14. Online Classifieds - Strategy“Traffic Sponsorship” leaves all sales, marketing and technology tothe larger national competitors. “Traffic Sponsorship” Overview Sell a national classified site the ability to gain new users by linking their site to yours. Strengths Required: - Strong local web traffic to main site Risks: - Traffic fluctuations. - Negotiations Longterm Strategy: - Focus on traffic growth. 14
    15. 15. Online Classifieds – Business OperationsAfter selecting your strategy, there are two key areas that need someplanning – content acquisition and audience acquisition.Content Acquisition: The Problem of The Chicken & The Egg- Classified sites with no content have no audience- How do you get the content to start?Source #1: Offline Classifieds- Create an automated/manual post system to ensure that each offlineclassified ad is included on the new online site.- Evaluate reverse publishing from online to print.- Evaluate charging for cross-posting online to print, print to online- Technical integration can be difficult and time consuming processSource #2: Aggregation- Create an automated tool to “copy” free classifieds from other sites- Create a process to input classifieds from free-standing bulletin boards.Source #3: Consumers Direct- Create pricing and promotional offers to encourage new posts. 15
    16. 16. Online Classifieds – Business OperationsAudience acquisition often requires large amounts of marketingsupport to start.Audience Acquisition: How do I generate trial?- What can I do to get people to try the site?- Post an Ad? Respond to an Ad?Source #1: Offline Marketing- Use your own in-house media to create awareness and generate trial + Contests that link print and online classifieds (e.g. treasure hunts)Source #2: Online Marketing/SEM/Social- Make your site as visible to search engines as possible- Track views per ad; evaulate buying search traffic to guarantee ad views- Evaluate creating a social media page for your classified site + Distribute ads on the page.Source #3: BBS Seeding- Find local BBS’s where you can cross post important ads to generate trial. 16
    17. 17. Online Classifieds – Business OperationsIncreasingly online classified advertising takes a free plus premiumservices model.Free: Most general classified sites, many directories and calendar sites arefree to post a standard listing.For completely free to post sites, all revenue is from contextual ad networks,like Yandex Direct and Google AdSense.Many free classified sites require commercial sellers to pay.Free + Premium: In these models, a standard basic ad is offered free togenerate content. Then the client is allowed to add new features for smalladditional fees.Typical Premium Features include:- Pictures - Bulk upload- Web links - Anonymous email contacts- Video - SMS notification 17
    18. 18. Online Classifieds – Business OperationsPricing can also involve bundling and upselling from your offlineproduct.Upselling: Adds a special premium usually to the print ad to automaticallycross post to the online site.- Upsell is often calculated as a percentage of the base price- Upsell % are generally small, but should reflect all the costs of crossposting and some marginBundling: Used especially with small businesses and frequent classifiedusers to encourage volume buying.Typical bundle might be volume packages – Buy two get one free.But a cross media bundle may also work to encourage online users to tryprint. “Place your ad online for free and get 50% off of the price of a classified ad to also include it in print.” 18
    19. 19. Online Classifieds – The FutureClassifieds meet a simple need to publish small bits of structuredinformation.In the simplicity is the source of the speed of their evolution. Online Classified TrendsMobile: The emergence of classifieds in India and Africa have createddemand for mobile posting, access and payments.Social: The growth of FaceBook and other social media have created a newway to post and distribute classifieds.Payments: Mobile and online payment processing have made onlineclassified sites much more like online e-commerce sites. 19
    20. 20. Online Classifieds – The FutureMobile classified platforms have boomed in India and Africa. Roopit.com SMS classifieds Based in Bangalore Free to list or search Also Verse Technologies Google Trader (goo.gl/trader) •Launched in Africa and Thailand •Allows for free listings •Designed for activity on mobile phones 20
    21. 21. Online Classifieds – The FutureClassifieds on Social Platforms like Facebook and Twitter have movedclassifieds to a more secure personal platform. FaceBook/Oodle.com Oodle built app inside FaceBook Provides some security, friend or friends of friends Rapidly building audience CLDmkt.com •Built as an application on Twitter •Simple listing creation •Access listings online, on Twitter, on mobile 21
    22. 22. Online Classifieds – The FutureClassified sites are also undergoing a rapid conversion to e-commerce sites with the development of simple mobile payments. Square Brings credit card transactions to individuals Simple sign-up and service Processing US $ 8 billion in 2011 M-Pesa/SafariCom •SMS enabled banking system •17 mm ises in Kenya/10 mm in Tanzania •Creates bank accounts for people with bank services •Provides for simple person to person transfers 22
    23. 23. Online Classifieds - SummaryThe online classifieds market is a small but rapidly growing market inRussia and the Ukraine and will present both opportunities andchallenges.Strategy: Know your strengths and weaknesses.- When to enter the market?- Why to enter the market? Protecting core offline classified revenue? Ornew business?- When to exit the market?Operations: Be aware of the need to stimulate classified content which willbuild audience.Pricing models need to reflect the competition and internal costs.The Future: The simplicity of the model results in rapid fragmentation andthe evolution of new features. 23

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